Google Stumbles In 2nd Quarter As Slump In Ad Rates Deepens
MOUNTAIN VIEW (CBS/AP) – Google’s financial performance faltered in the second quarter as a downturn in the Internet search leader’s ad prices deepened.
The results announced Thursday show Google is still having trouble navigating a technological transition driving more online activity on to smartphones and tablets. Those devices pose a challenge because their smaller screen sizes fetch lower ad rates than on personal computers.
Google’s stock fell more than 5 percent in extended trading.
Google Inc.’s average ad rate fell by 6 percent from the same time last year during the three months ending in June. It marks the seventh consecutive quarter of falling ad prices.
Google earned $3.2 billion, or $9.54 per share, up 16 percent from $2.8 billion, or $8.42 per share, a year earlier.
Revenue rose 19 percent to $14.1 billion.
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